Total Product Offer
Everything that consumers evaluate when deciding whether to buy something. (aka Value Package)
convenience goods and services
Products that the consumer wants to purchase frequently and with minimum effort.
Examples: Candy, gum, milk, snacks, gas, etc.
Shopping goods and services
Products that the consumer buys only after comparing value, quality, price and style from a variety of sellers.
Examples: clothes, appliances, electronics, auto repair, etc.
Specialty goods and services
consumer products with unique characteristics and brand identity. Products are perceived to have no other substitute and consumer will put forth effort to get these products.
Examples: Fine watches, Wines, Imported chocolates, services, etc.
Unsought goods and services
products that consumers are unaware of, haven't necessarily thought of buying, or find they need to solve an unexpected problem.
Examples: Car towing, funeral services, insurance, etc.
The degree to which customers are satisfied and are further committed to future purchases of that brand.
Manger who has direct responsibility for one brand or one product line. (aka product manager)
Process designed to reduce the number of new product ideas being worked on at any one time.
making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.
promoting a product to distributors and retailers to get wide distribution and developing strong ads and sales campaigns to generate and maintain interest in the product among distributors and consumers.
Product life cycle
A theoretical model of what happens to sales and profits for a product class over time.
designing a product so that it satisfies customers and meets profit margins desired by the firm.
Strategy by which one or more dominant firms set pricing practices all competitors in an industry follow.
Break Even Analysis
Process used to determine profitability at various levels of sales.
BEP= Total Fixed Costs/ Price of one unit - Variable costs of one unit.